Question

1. The accounting department of Jimbringinger Company receives an instrument that states, “January 6, 2012. Thirty days after date, I promise to pay to the order of cash, $700 (seven hundred and 00/100 dollars), in San Francisco, California, with interest at the rate of 7% (seven percent) per year. This instrument is secured by a contract for the sale of a barbeque grill. Due April 15, 2012. [Signed] Ed Jacobite.” What type of instrument is this? Is it negotiable? If not, why not? Cite your textbook for support

Answer 1

It is a promisory note. When the promisory note is unconditonal it is negotiable. Since there is no condition imposed in the language of the note it shall be considered as negotiable.

Though it is written to cite the textbook which I am unaware of which textbook is yours but I am giving you a citation you can use otehr than textbook:

Whaley DJ. (2012). Mortgage Foreclosures, Promissory Notes, and the Uniform Commercial Code. Western State University Law Review. LexisNexis entry